7 Min Read | December 21, 2022
Average credit scores tend to change based on age, state, and income. But none of these are actually used to calculate your score. Good credit habits matter most.
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
At-A-Glance
Factors like your age, state, and income level don’t actually affect your credit score.
Yet there are correlations between average credit score and age, state, and how much you make.
For example, the older the age group, the higher the average credit score. Credit score averages tend to rise with income levels, too.
The average FICO (Fair Isaac Corporation) credit score for Americans rose to 716 in April 2021 and held steady at that number as of April 2022, having risen steadily since 2013.1 By most lending standards, 716 is considered a “good” credit score. And anyone at any age, location, or income level can build a good – or even excellent – credit score. Yet not all age groups, states, or income levels tend to have the same average scores.
So when, where, and why do credit scores tend to flourish? Let’s explore average FICO credit scores by age, state, and income level to find out.
Average Credit Score by Age
In a way, FICO does pay attention to age when it comes to calculating yourcredit score, but not the way you might expect. The average length of your credit history is what matters, not how many times you’ve revolved around the sun. In other words, your age is generally not a great indicator of credit score, and it’s entirely possible for a young person to have a high score and an older person to have a low score.
Still, average credit scores tend to increase with age. In 2021, people aged 18 to 24 averaged 679, while those 76 and up had an average credit score of 760.2
Average Credit Score by Age, Second Quarter 20212
| Age | Average FICO Score |
| 18-24 | 679 |
| 25-40 | 686 |
| 41-56 | 705 |
| 57-75 | 740 |
| 76+ | 760 |
If age isn’t factored into credit score, why the upward trend? For one, we have to earn our credit scores, which takes time. A younger person is more likely to have a lower credit score than an older person simply because they have shorter payment and credit histories than their older counterparts. Consider how age plays a role in relation to the five variables used to calculate a FICO score and their relative weighting in FICO’s scoring model:
- 35% Payment History: Older accounts have made more payments, increasing their scores if those payments were consistently on time or decreasing them if too many were made late. The older you are, the longer the account history it’s possible to have.
- 30% Credit Utilization Ratio: As we age, our income tends to grow. And income can affect how high a credit limit we receive. The lower your credit utilization ratio – how much of your total available credit limit is in use – the greater the chance it will positively affect your credit score.
- 15% Length of Credit History: Account age increases over time, and as long as you keep your oldest accounts open, they’ll be calculated into your average account age.
- 10% Credit Mix: Credit scorers like to see that you can responsibly handle various types of debt. As you age, you’ll likely have more opportunities to open different types of accounts. An 18-year-old might only have a credit card account, while a 40-year-old might have a car loan, mortgage, personal loan, and several credit cards.
- 10% Recent Inquiries and Newly Opened Accounts: Any time you open a new account, you’ll see a ding in your credit score. This is because the lender makes a hard inquiry into your account. A hard inquiry will stop affecting your credit score in a year. If you’re older and already have all of your desired accounts established, you may be less likely to incur hard inquiries that lower your score.
All of the above add up to boost your credit score over time, given you are consistently paying off debts – which leads us to another reason why average credit scores tend to increase with age: financial responsibility. As people get older, they generally mature and become more responsible with their money. Plus, the more time that passes, the more time you have to recover from credit mistakes. Many negative credit items will stop affecting your credit score within seven years – as long as you maintain good credit habits.
Average Credit Score by State
According to FICO data from April 2021, 31 states and Washington, D.C., had average credit scores that ranked higher than the national average of 716.3 The same data found states in the Midwest and New England generally had the highest average credit scores.
10 States with Highest Average Credit Scores3
| State | Average FICO Score |
| Minnesota | 742 |
| Vermont | 738 |
| Wisconsin | 736 |
| North Dakota | 736 |
| Massachusetts | 735 |
| New Hampshire | 735 |
| South Dakota | 735 |
| Washington | 734 |
| Hawaii | 733 |
| Nebraska | 733 |
Meanwhile, a WalletHub analysis found the average credit score in the South was lower than the rest of the U.S. – 702 in the Southeast and 696 in the Southwest – while the average credit score for Mississippi residents, the state with the lowest average credit score, was 681.4
Since where you live is never considered when calculating your credit score, why some states have higher average credit scores than others comes down to other common characteristics that can influence scores, according to several experts interviewed in the WalletHub analysis. Factors like demographics, unemployment rates, poverty levels, education, and income can all contribute to one’s ability to build a high credit score.
Average Credit Score by Income
Your income isn’t factored into your credit score calculation, either, but a November 2020 analysis from the Federal Reserve Bank of New York found the higher the income level, the higher the average credit score.5 That corroborated a 2018 Federal Reserve study that found how much you earn may have a “moderate correlation” to your credit score.6 The chart below shows results of the New York Fed’s analysis, which defined its income tiers in relation to U.S. median household income, with “low income” being less than 80% of the median income for the nearest metropolitan area. The national average median household income for 2021 was $70,784, according to the Federal Reserve Bank of St. Louis.7
Average Credit Score by Income5
| Annual Income | Average Credit Score |
| Low Income | 658 |
| Moderate Income | 692 |
| Middle Income | 735 |
| High Income | 774 |
Like age and location, income bears no direct impact on your credit score, but the two factors still seem to be related. Why? One possible reason is that lower income may result in a lower ability to pay debts consistently, while higher income may result in a stronger payment history. Of course, this varies according to personal expenses and total levels of debt. But someone with a $100,000 salary may be more able to pay back $15,000 in credit card debt than someone with a $30,000 salary.
Credit utilization ratio also plays a factor here. Credit card issuers might look at your income when determining your credit limit, so the higher your income, the more likely you’ll be approved for a higher credit limit. When you have a high credit limit, it can be easier to keep your credit utilization ratio under 30%, which can positively affect your credit score.
Still, it’s important to remember that despite the correlation between average credit score and income, you don’t need to earn a lot in order to build an excellent credit score. Financial responsibility takes precedence. So as long as you spend mindfully – and always pay your bills on time – you are more likely to establish and maintain great credit.
The Takeaway
Average credit scores tend to vary by age, state, and income, yet none of these factors are used to help calculate your credit score. Age and income, however, can indirectly affect your ability to satisfy the five factors used to determine your credit score. Meanwhile, demographic information like education level and average income can impact average credit scores from state to state. All things considered, with good financial practices, anyone can build an excellent credit score, regardless of their age, salary, or where they live.
1 “Average U.S. FICO® Score Stays Steady at 716, as Missed Payments and Consumer Debt Rises,” FICO
2“What Is the Average Credit Score in the U.S.?,” Experian
3 “2021 Credit Trends in the US by City and State,” FICO
4 “What Is the Average Credit Score in America?,” WalletHub
5 “The State of Low Income America: Credit Access & Debt Payment,”Federal Reserve Bank of New York
6 “Are Income and Credit Scores Highly Correlated?,” U.S. Federal Reserve
7 “Real Median Household Income in the United States,”St. Louis Fed
Tony Azzarais a business technology writer and researcher based in Queens, NY, whose work focuses primarily on financial services technology.
All Credit Intelcontent is written by freelance authors and commissioned and paid for by American Express.
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